Welcome to Extreme Investor Network, where we provide unique insights and analysis on the Stock Market, trading, and everything Wall Street related. Today, we are focusing on the bear flag continuation potential in the current market environment.
Recently, a bear flag trend continuation pattern was triggered, indicating a bearish outlook for gold. Despite this signal, gold has been consolidating around the same price range for the past three days. However, lower support levels are likely to be tested before the larger bull trend resumes. Keep an eye out for an advance above last week’s high of 2,352 to potentially change this bearish outlook.
In terms of lower targets, the next potential support area is a range of Fibonacci levels from 2,261 to 2,255. The 50-Day MA has not been tested as support since February, making it a key target at 2,234. Additionally, the completion of a bear flag pattern indicates a potential target of 2,238. It’s important to note the support level from April at 2,228, which could come into play if prices continue to drop.
If the bearish signal triggers a lower price zone this month, sellers may become more aggressive. Potential support levels to watch for include the completion of a falling ABCD pattern at 2,212 and a 50% retracement level at 2,208, following a break below the 50-Day MA.
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